Indiana company scraps plans for expansion over ObamaCare device tax
Once again we can say “thank you Obama”, for hindering another business from expanding and creating jobs. There’s an Indiana based medical equipment manufacturer who has decided to scrap the idea of expanding and opening 5 new plants, in the coming years, that would have created many jobs, because of the tax that is tied to Obama’s healthcare overhaul law.
Cook Medical says the tax on medical devices which is to take effect next year, would cost the company roughly $20 million a year, which cuts into the money that would have gone to expanding and creating jobs.
“This is the equivalent of about a plant a year that we’re not going to be able to build,” a company spokesman told FoxNews.com. Fox News
The original plan was to build factories in hard pressed Midwestern communities with each employing up to 300 people. The only thing, those new factories cost the same amount as to what the tax would be to build. So the company spokesman said at this time the company is no longer looking to expand in the US. (praise Obama for this no brainer).
Company executive Pete Yonkman first revealed the scuttled plans in an interview with the Indianapolis Business Journal. The company later confirmed the decision to FoxNews.com.
The Affordable Healthcare Act imposed a 2.3% tax on medical devices beginning in 2013. It is projected raise nearly $30 billion over the next decade. So as a result, less factories will be built, and there could even be a shortage in equipment with so many people to be covered by his plan.
A Cook Medical spokesman also said it’s much worse than just the 2.3% in taxes, as it begins in 2013, but this tax is expected to raise over $30 billion in the next decade. Republicans and medical device makers have opposed the tax from the beginning, but to no avail. Of course, Obama supporters dispute all of these claims. But the companies who make the devices should know what things cost.
“The tax will not cause manufacturers to shift production overseas. The tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt,” the study said. It also said repealing the tax would “undercut health reform” by requiring Congress to offset the repeal by potentially killing spending provisions in the law and by potentially encouraging similar repeals. Fox News
Or these companies may then cut back on production to avoid such high taxes.
Cook Medical is part of a family of companies that produce medical devices for surgery, obstetrics, gynecology and other fields. Little by little, more of the hidden secrets of Obamacare are going to be revealed. By now we should know, that government has no business in healthcare, as they aren’t experts, and know nothing of how a business operates, let alone the cost of materials, and so on.